Location: Humboldt County, CA | Metro: Humboldt County, CA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,640 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,790 |
| 5 Bedrooms | $4,396 |
| 6 Bedrooms | $4,924 |
| 7 Bedrooms | $5,318 |
| 8 Bedrooms | $5,584 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $584,474 | 0.39% | F |
| 3BR | $3,140 | $718,564 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 95570, located in Trinidad, CA, reveals a detailed snapshot of the rental market dynamics. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom unit, which is set at $2,160 annually for fiscal year 2026, based on the metropolitan area standards. When this figure is annualized, it translates to a monthly rent of approximately $180. Given the median home value in the area is $573,474, this implies a gross yield of about 0.38%, calculated by dividing the annual rent ($2,160) by the median home value ($573,474).
Next, we turn our attention to the market rent, which stands at $2,144 annually according to the Census ACS data. This results in a slightly lower monthly rent of roughly $179. With the same median home value applied, the gross yield drops to around 0.37%. The difference between these two yields is minimal, but it underscores the tight alignment between the government-set FMR and the actual market conditions.
In evaluating which scenario is more realistic, we must consider the local rental market characteristics. The renter density in ZIP 95570 is 28.9%, indicating that nearly one-third of the population rents their homes. However, the lack of Days on Market (DOM) data makes it challenging to gauge how quickly properties might be leased, which is crucial for understanding vacancy rates and overall property management costs. Despite this, the higher gross yield based on the FMR appears more favorable for landlords and small-portfolio investors due to the guaranteed nature of Section 8 payments, which reduces the risk associated with tenant defaults and vacancy periods.
It's important to note that while the gross yield provides a starting point for investment analysis, it does not account for operating expenses, insurance, maintenance, or other costs that can significantly impact net operating income (NOI). Investors should conduct thorough due diligence and factor in all relevant expenses to determine the true profitability of a Section 8 investment in ZIP 95570. Nonetheless, the gross yield comparison clearly shows that the FMR scenario offers a marginally better return, making it a potentially more attractive option for those considering Section 8 participation.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.